Infotech training major (Aptech) plans to join hands with Sun Micro to develop e-commerce solutions for the banking, insurance and business-to-business retail segments based on Sun platform.
Aptech is India' second largest information technology (IT) training company with 39% market share (in FY99). With the largest number of exclusive franchises in the country and aggressive marketing, the Aptech brand along with NIIT, has become synonymous with IT training in the country.
According to a news report appearing in a leading financial daily, the two companies are currently working on a portal for enabling business-to-business transactions that address 10 segments of the manufacturing industry.
Aptech's tie-up with Sun will reinforce its expertise in providing e-business solutions. It will help the company graduate into a total solutions provider for e-business. Sun Micro's exposure to developed markets like the US where business-to-business e-commerce translates into billions of dollars will stand the company in good stead.
Aptech's focus on e-commerce related solutions is a step in the right direction, which has become the focus of leading software majors like Infosys, Satyam, NIIT and Wipro among others. This is a high-margin business, and will prove very critical given the explosive growth of Internet subscriptions in the country.
Analysts expect strong domestic demand for IT professionals to give Aptech's IT training business a boost. However, some analysts are concerned about the near-constant operating margins. Moreover, private placement of equity has also depressed earnings. Therefore, recommendations have fluctuated from 'NEUTRAL' to 'SELL'.
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